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| T O P I C R E V I E W |
| Joozee |
Posted - 13 April 2008 : 15:07:19
Hi everyone,
I've been posting on iva.co.uk forum but having had my IVA rejected after 2 adjurnments i've decided the best way forward for me is to make myself bankrupt.
Basically I've got 63,000 unsecured debts to banks and my father due to a compulsive gambling problem for which i'm succesfully recieving proffesional help. I have no-or very little equity in my house because it's a shared ownership scheme and I live in it with my wife and 2 (soon to be 3) kids. I think worst case my IP said that that my equity could be bought back for 2k so my wife may be able to raise that. I have a good job, I just cannot afford to pay back my gambling debts.
My IP has talked me through the procedure for bankruptcy and i've been filling the forms in online. I'm just wondering about a couple of things.
1.
When I state my assets, is this literally everything I own? I mean I have a car (worth 3k) but nothing else of value at all..not over 100 quid anyway. My IP just said that my posessions would be safe but didn't state how detailed I needed to be. Also, becuase i share my house with my wife, do i need to put things down that also belong to her.
2. After my monthly outgoings i'm left with around 550 to pay towards my creditors. But in terms of my bank account what do i do? obviously i have my monthly direct debits coming out for my mortgage, bills etc and obviously my salary going straight in there...will it get frozen? and if it does how will I be able to pay my bills.
I'm hoping to complete my form and get to the court this week, do you have to make an appointment or can you just turn up?
Apologies for all the questions but I was hoping my IVA would go through so read all about that and now i've got something else to come to terms with.
Jon
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| 15 L A T E S T R E P L I E S (Newest First) |
| melanie_giles |
Posted - 15 April 2008 : 22:32:38
Check the terms of the agreement to see if it is HP or unsecured. Often furniture companies provide goods which are paid for by HP agreements, but they rarely turn up to collect second hand furniture sho you should be safe.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Helpful Advice |
Posted - 15 April 2008 : 12:12:13
Hi Jon,
1) You will need to resign as director, but make sure you enter that you were a director of this company in the statement of affairs and to say that it is a non trading company
2) This will be an unsecured debt to be included within the Bankruptcy.
I hope this helps,
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| Joozee |
Posted - 15 April 2008 : 11:16:50
Thanks Brett, I am going to fill in te form the best i can and then seek some advice to make sure everything is OK.
I do have two questions though that I wonder if anyone can advise on.
1. I am a direcotr of a small limited company. The company has ceased trading now and will be closed on june 6th, my shares are worth about 100 quid so I will declare that. Do I need to resign as a director immediatley though? before or after I petition?
2. I have a credit agreement with a sofa company, 5 years interest free credit which has 12 months and 400 quid left to run. If I decalre this, what is it? HP? Secured loan? just a normal unsecured creditor? Or should I leave it off as it's 4 years old and worth prectically nothing now?
Thanks
Jon |
| Helpful Advice |
Posted - 14 April 2008 : 18:00:47
Hi Jooze,
As Paul says you could well benefit form some advice with a specialist on Bankruptcy, may I suggest you contact Paul via his website as he is very skilled in these areas.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
| Reviva UK |
Posted - 13 April 2008 : 20:53:53
Sounds like you have had a reasonable and v helpful IP.
They are obviously skilled at the legal insolvency side, wherease an assisted bankrupty specialist is good at the nuts and bolts of procedures on the day, preparation of forms, preparation of OR dossier and court procedures in your local court.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Joozee |
Posted - 13 April 2008 : 20:49:51
Thanks Paul, the IP from my IVA has been giving me advice but it would be reassuring to get a second opinion on everything. I'll give someone a call. After the stress of the adjurments and negotiations with my IVA rejection i could do with my bankruptcy petition being correctly done.
I've just valued the car on parkers and it comes out around £2500 so maybe you are right.
Cheers
Jon |
| Reviva UK |
Posted - 13 April 2008 : 20:25:57
Hi John
always better to be SAFE with the car - the last thing you need is for the OR to tell you to change to a 2k car and send him the balance.
I recently had a client who bought an X reg Vauxhall Vectra 1.8 LS for 1800. The OR didn't believe him so we had to prove it and show receipts etc. Just goes to show that you can get a decent car for under 2k!.
lastly the forms are extremely stressful if you haven't done them before. There are companies on the forum that offer varying levels of support from simply form filling to full hand holding pre Br, with you on the day and with you with the OR. Pluss support throughout the year.
They would also help you to get your ducks in a row.
Maybe you should have a free chat with a Bankruptcy Assistance expert to make sure you are on the right track
take care
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Joozee |
Posted - 13 April 2008 : 20:18:29
Thanks Paul,
Should I open the account now or after i've petitioned?
As for the car, like I said i'll have 3 kids in July and travel 1500 miles a month to and from work so I need a biggish and reliable car thats not going to cost me heaps in repairs. I'll maybe get it valued as you say.
I've been advised to keep a copy for myself. I wish i wasn't doing my own forms though, maybe it's the stress of my IVA being rejected that i'm finding them a bind. Maybe i'll leave it a day or two and re-focus a bit.
Cheers for your thoughts
Jon
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| Reviva UK |
Posted - 13 April 2008 : 19:46:43
Hi Joozee
just a thought re bank accounts - it might be worth opening up a COOP CASHMINDER account as I have not had experience of clients managing to keep their Yorkshire accounts open in Br.
The account allows you everything a basic account does PLUS a visa electron card - so better than most.
You also may want to get your car valued as if it is worth 3k it is at the absolute to end- a 2k car is much safer especially if you need it for work . ( check values at parker guide online)
also if you are doing your own forms suggest you keep a copy for your own records so that when then official receiver goes through everything you have it written down infront of you.
You might also want to check with your local court as some require more than 1 copy.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
| Joozee |
Posted - 13 April 2008 : 18:57:48
Thanks Melanie, I'm pleased you put it like that as thats exactly what my IP said to me. They were basically offered 50p in the £1 and turned it down.
I think once i get over the strain of filling in the forms and petitionign etc it will be the best option. |
| melanie_giles |
Posted - 13 April 2008 : 18:41:55
Correct - at least with bankruptcy you get to keep up to half your disposable income and will only pay the remainder to creditors over a maximum three year term. Creditors must be daft not to accept your IVA offer, and deserve to get nothing back.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Joozee |
Posted - 13 April 2008 : 18:21:37
Yes thats right Melanie, like I said, I worked out that to pay him back after my IVA he'll be 74 when he gets it all back so i cannot agree to it.
I see Bankruptcy as the only option left as debt management plans would probably work out at more monthly contributions before i even agree to anything with my Dad. |
| melanie_giles |
Posted - 13 April 2008 : 17:58:58
OK- I remember the post, sorry, so we have explored the IVA and that will not work as creditors are insisting that your father's debt be left out and for him to waive his right to a dividend.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Joozee |
Posted - 13 April 2008 : 16:00:02
Hi Melanie,
You gave me some advice on my IVA on the other forum.
15,500 of the debt is to my father. Northern Rock wanted to increase my contributions to 625 per month for but to exclude my fathers debts. Basically meaning that I would have to pay everything I owed to creditors back over 6 years and still owe my father 15,500 (he is retired and I can't not have him included in the agreement.
We tried to negotiate with northern Rock about the situation but in the end they had the deciding vote and rejected it becuase I could not meet their modifications and pay back my father.
I realise bankruptcy is not the greatest of options but as I have no equity in my house and no assets of any real value i've been advised so far that it's the best option for me to clear the debts, as you say i've offered what I thought was a reasonable offer to the creditors but as they would probably take the same decisions if I applied again then I don't really see the point.
I changed my bank from the Halifax to the Yorkshire bank just before I applied for my IVA becuase I owe the halifax but have no debts with the Yorkshire bank. I realise what you say about withdrawing any money but I only really have what is left to pay bills and live on for this month. When i get paid on the 25th of this month I'm just worried I won't be able to get access to it to live on.
As for the other point. I guess i'll make a big list of my assets. Becuase I live with my wife, some things are hers...do i need to put everything down?
Thanks again |
| melanie_giles |
Posted - 13 April 2008 : 15:35:33
Hi Joozee and welcome to this forum!
First of all do you know why your IVA is being rejected by creditors. With £550 to offer to £62k worth of creditors that would seem to be a good offer to me. Which firm have been acting for you?
If you do decide that bankruptcy is your only option, then you do need to list all of your assets, but your normal domestic items will be exempt from the proceedings.
If you are banking with a bank to whom you also owe money, then it would be sensible to open a new account to have your salary paid into before you petition. The account is likely to be frozen temporarily, until the OR and your bank can liaise on this point, so you would be wise to draw out any surplus money before attending Court to enable your essential payments to be made in the meantime.
I would ring the bankruptcy clerk to arrange an appointment for a bankruptcy hearing, but I would also take a second opinion on that IVA as well.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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